Looking for REO property or a foreclosure in Speonk?

Purchasing a bank-owned property is not something to be taken casually.

What is an REO?

"REO" or Real Estate Owned are houses which have been foreclosed upon and are now possessed by the bank or mortgage company. This differs from a property up for foreclosure auction. Gateway to the Hamptons Real Estate has experience to share with foreclosures and bank owned properties in Speonk, New York

When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be able to pay with cash in hand. And on top of all that, you'll get the property completely as is. That possibly may involve current liens and even current denizens that need to be thrown out.

A bank-owned property, on the other hand, is a much cleaner and attractive deal. The REO property didn't find a buyer during foreclosure auction. Now the lender owns it. The bank will attend to the elimination of tax liens, evict occupants if needed and generally arrange for the issuance of a title insurance policy to the buyer at closing.

Take notice that REOs may be exempt from standard disclosure requirements. For example, in California, banks are exempt from giving a Transfer Disclosure Statement, a document that typically requires sellers to make known any defects they are informed of. By hiring Gateway to the Hamptons Real Estate, you can rest assured knowing all parties are fulfilling New York state disclosure requirements.

Am I assured a low price when buying an REO property in Speonk?

It is occasionally presumed that any foreclosure must be a good deal and a possibility for easy money. This simply isn't true. You have to be very careful about buying a REO if your intent is to make a profit. Even though the bank is typically eager to offload it quickly, they are also motivated to minimize any losses.

Gateway to the Hamptons Real Estate has experience to share with foreclosures and bank owned properties in Speonk, New York Look closely at the listing and sales prices of similar homes in the neighborhood when making an offer on an REO. And factor in any repairs or upgrades necessary to prepare the house for resale or moving in. There are bargains with potential to make money, and many people do very well buying foreclosures. Still, there are also many REOs that are not good buys and may lose money.

Time to make an offer?

Most banks have staff dedicated to REO that you'll work with while buying REO property from them. Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.

Prior to making your offer, you'll want to contact either the listing agent or REO department at the bank and discover as much as you can about what they know concerning the condition of the property and what their process is for accepting offers. Since banks most commonly sell REO properties "as is", it may be in your best interest to include an inspection contingency in your offer that gives you time to check for hidden damage and retract the offer if you find it. As with making any offer on real estate, providing documentation of your ability to pay may make your offer more attractive, such as a pre-approval letter from a lender.

Once you've presented your offer, you can expect the bank to make a counter offer. At this point it will be your choice whether to accept their counter, or make another counter offer. Your transaction might be settled in one day, but that's usually not the case. Since offers and counter offers usually allow a day or more for the other party to respond (and employees at a bank don't work nights or weekends) you could be looking at a week or longer.

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